Mortgage Bytes

  • Renewal At mortgage renewal time don’t just sign your bank’s renewal form!  The Nanaimo Bulletin explains why.
  • Buying a 2nd home or cottage and don’t have a down payment?  MyNext Mortgage Company now offers 100% financing on leisure properties
  • Do you need to refinance an expensive house?  MyNext has eliminated their maximum mortgage amount on refi’s.  You can borrow up to 95% of the home’s value.  MyNext mortgages are only available through Mortgage Architects planners.  Call us for more information.
  • The average CHIP reverse mortgage client is 73, stays in his/her home for 10-12 years, and borrows 30% of their home equity.  (Financial Post)
  1. I got a renewal form from my bank on Tuesday and couldn’t believe it. The bank’s “offer” was 3/4% above market rates.
    Renewals seem like the banks subtle way of sticking it to you. They hope you’ll bite thanks to the convenience of their simple form.

  2. From MyNext:
    “Simply state your income for an easier mortgage approval process. Perfect for when your situation could use a little accommodation.”
    . . .
    “Lower your monthly payments and boost your purchasing power. Get into the home you need without giving up the lifestyle you want.”
    . . .
    “An interest-only mortgage (to 80% LTV) that lowers monthly payments and maximizes purchasing power. Buy the home you want, or channel the difference to other needs like your business, investments, or whatever your situation requires.”
    What the heck is going on here. Haven’t people learned yet that this is NOT the direction that we should be going? I wonder if I could get a list of the homes that are financed with these methods. I bet in 2-5 years it will be a great shopping list for some good deals.

  3. I’m currently looking for an interest only as we speak. I see no problem with them if you have the discipline to pay them down. The only thing that sucks is that you can’t get them with $0 down.

  4. Hi Traciatim,
    Yes, interest-only deals are definitely more risky than your vanilla mortgage. Nonetheless, Canadian lenders are generally very prudent in underwriting these loans. While it’s still possible for people to get in over their heads, interest-only mortgages do in fact have several valid uses.
    Donald, You are right in that interest-only mortgages are not currently available in Canada with $0 down (to the best of our knowledge).
    Have a wonderful evening,
    Melanie

  5. You people are an excellent example of the housing bubble mentality. Take a look on MLS and see the countless EMPTY homes which are being REDUCED. The Canadian housing bubble is following the US housing bubble just 6-8 months behind. I know of two people who own two homes and one of them is EMPTY and sitting on MLS and guess who’s crying about DOUBLE MORTGAGES? POP…..what was that?

  6. Hi Housing Bubble,
    I’m not sure what you mean about “bubble mentality” but I agree with you on at least 3 points.
    1. Canada is not immune from bubbles.
    2. As we’ve noted before on CMT, there [i]are[/i] signs of bubbles in certain Canadian locales.
    3. There is a lot of housing supply coming on the market in some regions of the country. Again, we’ve talked about that before here on CMT.
    The thing with bubbles is, they can get a lot bigger before they pop. They can also get smaller before they pop.
    We’ll keep a keen eye on Canada’s market in coming months–especially as the economy is affected by a rising dollar and the U.S. slowdown. We appreciate your comments and welcome you to write back again!
    Robert, Co-Ed., CMT

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